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Tamil Nadu sets Rs 5,000 crore loan target for small farmers
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News18•16-10-2026, 12:24
Tamil Nadu sets Rs 5,000 crore loan target for small farmers
- •The Tamil Nadu government has set a target to disburse loans worth Rs 5,000 crore to marginal and small farmers in the current fiscal year.
- •Plans include providing Rs 2,000 crore through District Central Cooperative Banks and Rs 3,000 crore through Primary Agricultural Cooperative Credit Societies.
- •Rural business loans will be provided at an annual interest rate of 9 percent with the objective of increasing the income of farmers.
- •A maximum loan of up to Rs 5 lakh will be provided per beneficiary as medium-term loans for agriculture and related occupations.
- •Loans must be repaid within 36 months, with provisions for a moratorium period of 3 to 6 months if required.
Key Questions Answered
The Tamil Nadu government has set a total loan target of Rs. 5,000 crore for marginal and small farmers for the financial year 2026-2027 to help increase their income.
Out of the total Rs. 5,000 crore, it is planned to provide Rs. 2,000 crore through District Central Cooperative Banks and Rs. 3,000 crore through Primary Agricultural Cooperative Credit Societies.
Beneficiaries can receive a maximum medium-term loan of up to Rs. 5 lakh at an annual interest rate of 9 percent. The loan, along with interest, must be repaid within 36 months, with a provision for a 3 to 6-month moratorium period if needed.
